Mistakes On The Lien Claim Form Can Be Fatal

Builders lien claims are on the rise. The builders lien is a powerful tool to secure payment but it must be filed correctly. Section 22 of the Builders Lien Act, SBC 1997, c. 45 (the "BLA") requires strict compliance with the manner and form prescribed by the BLA otherwise the lien can be extinguished. The BLA contains no curative provision in the event of a mistake on the lien claim form.

The strict adherence required by the BLA stands in contrast with section 28(1) of the Interpretation Act, R.S.B.C. 1996, c. 238 (the "IA"), which says:

If a form is prescribed under an enactment, deviations from it not affecting the substance or calculated to mislead, do not invalidate the form used.

In the recent B.C. decision, Yongfeng Holdings Inc v Zheng, 2019 BCSC 1534, the BC Supreme Court weighed the strict compliance required by the BLA and the curative provision in the IA.

In this case, Yongfeng Holdings Inc. ("Y Holdings") entered into a construction...